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Identify the type of goods having price elasticity of demand greater than 1: - Economic Applications

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प्रश्न

Identify the type of goods having price elasticity of demand greater than 1:

विकल्प

  • Luxury goods

  • Inferior goods

  • Necessary goods

  • Giffen goods

MCQ
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उत्तर

Luxury goods

Explanation: 

The price elasticity of demand for luxury products is greater than 1 because the percentage change in demand exceeds the percentage change in price of luxury items.

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